WEBVTT - Escalation Between Iran and Israel, Tech Leads Selloff 0:00:02.440 --> 0:00:08.960 Bloomberg Audio Studios, Podcasts, radio News from. 0:00:08.800 --> 0:00:12.240 The Heart where Innovation of money and power. Collie in 0:00:12.360 --> 0:00:13.800 Silicon Vallet Nbon. 0:00:14.200 --> 0:00:17.720 This is Bloomberg Technology with Caroline Hyde and Ed. 0:00:17.760 --> 0:00:18.439 Luod Love. 0:00:32.440 --> 0:00:34.479 Live from New York. This is Bloomberg Technology. 0:00:34.880 --> 0:00:37.159 Let us get straight to the breaking geopolitical news and 0:00:37.200 --> 0:00:40.120 its market impact. Now, the US has indications that Iran 0:00:40.240 --> 0:00:44.440 is preparing to imminently launch a ballistic missile attack against Israel. 0:00:44.680 --> 0:00:47.120 So all according to a senior White House official, markets 0:00:47.560 --> 0:00:49.960 while seeking out safety, We're down on the S and 0:00:49.960 --> 0:00:51.800 P five hundred more than a percentage point. It was 0:00:51.840 --> 0:00:55.120 a swift move from the headline, but notably, this is 0:00:55.120 --> 0:00:57.760 only the biggest sell of since September sixth, not even 0:00:57.800 --> 0:01:00.639 a month. Nazak one hundred has similar moves to the downside. 0:01:00.640 --> 0:01:02.720 We're seeing money move into oil up three and a 0:01:02.760 --> 0:01:05.160 half percent, worries about the supply side there and a 0:01:05.240 --> 0:01:08.280 tenure yield that crashes down some six basis points. This, 0:01:08.440 --> 0:01:10.640 of course as we see a search for safety, but 0:01:10.680 --> 0:01:13.919 we want to bring you the context. Bloomberg's Kaylee lines 0:01:14.000 --> 0:01:16.000 on the Latest News, we are very pleased to have 0:01:16.000 --> 0:01:17.960 you in New York. We understand that the US is 0:01:18.000 --> 0:01:21.720 actively supporting preparations to defend Israel against the possible attack. 0:01:22.000 --> 0:01:24.360 Yeah, that's right, Caroline, and I would remind everyone that 0:01:24.400 --> 0:01:26.959 the US already has had to act in tandem with 0:01:27.040 --> 0:01:30.160 Israel and other allies, including the UK and Jordan about 0:01:30.200 --> 0:01:33.319 six months ago when Iran launched hundreds of missiles and 0:01:33.360 --> 0:01:36.040 drones at Israel and an attack back in April. Largely 0:01:36.080 --> 0:01:39.280 those were intercepted as it was telegraphed beforehand that they 0:01:39.560 --> 0:01:42.360 were coming. Now, the US intelligence does suggest that iron 0:01:42.400 --> 0:01:45.520 may be preparing to do something similar as it retaliates 0:01:45.520 --> 0:01:48.200 against Israel. This is retaliation that we have been expecting 0:01:48.360 --> 0:01:51.000 for about two months now since Israel took out although 0:01:51.000 --> 0:01:53.400 it did not claim credit for it, Hamas's political leader 0:01:53.640 --> 0:01:56.200 in Tehran over the summer. Uran has yet to hit 0:01:56.320 --> 0:01:58.760 back over that, and there is potentially more for them 0:01:58.760 --> 0:02:01.400 to retaliate against now after Israel just in the last 0:02:01.440 --> 0:02:04.800 week was able to kill the leader of Hamasna san 0:02:04.920 --> 0:02:08.440 has Hassan Asrala of course in Lebanon, and has just 0:02:08.480 --> 0:02:11.280 in the last twenty four hours launched a ground incursion 0:02:11.440 --> 0:02:14.840 into Lebanon and what they're calling targeted operations. But that 0:02:14.960 --> 0:02:16.840 is the kind of behavior that the US and others 0:02:17.160 --> 0:02:19.680 have been warning could be seen as escalatory as everyone 0:02:19.720 --> 0:02:21.840 is trying to fend off a wider regional war in 0:02:21.880 --> 0:02:24.800 the Middle East, but still Israel is moving into Lebanon 0:02:24.880 --> 0:02:27.680 as we speak. And Hesbela, of course, one of the 0:02:27.720 --> 0:02:30.639 most powerful, if not the most powerful, Iranian proxy, has 0:02:30.680 --> 0:02:34.320 been seriously weakened by Israeli activity over the last several weeks, 0:02:34.360 --> 0:02:36.560 not just with the killing of Nostralla, but also of 0:02:36.600 --> 0:02:39.600 a number of senior commanders, the explosions of pagers and 0:02:39.680 --> 0:02:42.160 walkie talkies in recent weeks that has limited their ability 0:02:42.360 --> 0:02:45.799 to communicate, and the weekend Hesbola could be seen potentially 0:02:45.840 --> 0:02:47.720 as a week in Iran and Iran wanting to show 0:02:48.160 --> 0:02:50.440 could be wanting to show here a force of strength 0:02:50.639 --> 0:02:52.760 in the region, even if it does have the potential 0:02:52.760 --> 0:02:55.200 to draw others more directly into this conflict, including the 0:02:55.280 --> 0:02:58.120 United States, which is yesterday said they're sending thousands of 0:02:58.120 --> 0:02:59.919 more troops and assets into the region. 0:03:00.720 --> 0:03:03.240 You give us a context of the US response, Kanie. 0:03:03.440 --> 0:03:06.359 All of this comes after, of course, what Iran did 0:03:06.360 --> 0:03:08.400 in April. This isn't the first time that we've seen 0:03:08.440 --> 0:03:10.600 them respond but at that time it almost felt as 0:03:10.600 --> 0:03:12.639 though it wasn't as aggressive as it could have been. 0:03:13.000 --> 0:03:15.520 What are you getting in terms of signals now, yeah. 0:03:15.400 --> 0:03:16.679 Caroline, that's absolutely right. 0:03:16.760 --> 0:03:18.840 It was explained to me back in April that Iran 0:03:18.919 --> 0:03:21.960 sent its slowest drones first. Essentially they were trying to 0:03:22.000 --> 0:03:24.640 signal that this attack was coming, and of course that 0:03:24.880 --> 0:03:27.480 enabled the attack to largely be intercepted. It resulted in 0:03:27.600 --> 0:03:31.120 very little damage to Israeli infrastructure. Only one person was 0:03:31.200 --> 0:03:34.960 ultimately killed, So that was escalation that actually was more 0:03:35.000 --> 0:03:38.160 de escalatory than it was escalatory. Israel hit back in 0:03:38.200 --> 0:03:42.040 a relatively my own manner and no tensions were continuing 0:03:42.080 --> 0:03:43.960 to climb from there at that point. The question is 0:03:44.000 --> 0:03:46.240 going to be the size and scope of Iran's response 0:03:46.320 --> 0:03:50.080 this time around. After that original killing of the Hamas 0:03:50.160 --> 0:03:52.520 political leader in t I Ran earlier this summer, many 0:03:52.560 --> 0:03:54.600 Middle East experts I was speaking with were warning that 0:03:54.720 --> 0:03:57.400 Iran might actually want to land a punch this time 0:03:57.600 --> 0:03:59.680 in a way that it didn't back in April due 0:03:59.680 --> 0:04:02.320 to that inn of everything pretty much that they sent over. 0:04:02.360 --> 0:04:04.040 So it's going to be a question of how limited 0:04:04.080 --> 0:04:07.360 in scope Aron chooses to be here as Iran may 0:04:07.400 --> 0:04:10.560 not have direct incentive to escalate this war further put 0:04:10.600 --> 0:04:13.560 its own self into this conflict rather than doing the 0:04:13.600 --> 0:04:15.560 fighting through its proxies as we've been seeing them do 0:04:15.640 --> 0:04:18.240 since October seventh, which is of course now almost a 0:04:18.320 --> 0:04:21.599 full year ago, and of course not wanting to draw 0:04:21.760 --> 0:04:24.440 more direct conflict with the United States either, because when 0:04:24.480 --> 0:04:27.200 American troops get involved, Caroline, that is where thanks get 0:04:27.200 --> 0:04:28.039 a whole lot trickier. 0:04:28.279 --> 0:04:31.560 Bloom Meg's Katie lines, thank you so much for being here. Meanwhile, 0:04:31.560 --> 0:04:33.320 we want to get yet more insight for you now. 0:04:33.360 --> 0:04:37.440 Bloomg's Dan Williams is on the ground Israel's Northern Command 0:04:37.480 --> 0:04:38.000 close to. 0:04:38.400 --> 0:04:39.440 The Lebanese border. 0:04:39.839 --> 0:04:41.359 Now we know that the imminent threat of the attack 0:04:41.400 --> 0:04:44.600 on Israel follows as Kaylie was pointing out, Israeli forces 0:04:44.680 --> 0:04:47.360 moving into southern Lebanon in an escalation of their own 0:04:47.400 --> 0:04:50.280 campaign against Tran backed hezbelah Dan. 0:04:50.760 --> 0:04:52.640 What's the latest on the ground? 0:04:53.240 --> 0:04:58.039 Has now all the Lady publicly moved round forces on 0:04:58.120 --> 0:05:02.200 a fairly large scale, while at the same time revealing 0:05:02.240 --> 0:05:05.560 to the world that since November of last year, it 0:05:05.600 --> 0:05:09.360 has been conducting dozens of small scale commander operations, but 0:05:09.400 --> 0:05:12.560 across that very border in order to prepare for what 0:05:12.560 --> 0:05:14.960 we've seen in the last hours, in order to collect 0:05:15.000 --> 0:05:19.400 intelligence in order to detect and dismantle Hezbeler position at 0:05:19.440 --> 0:05:23.640 e the bod use for a crosswater attack by Asbella 0:05:24.040 --> 0:05:27.120 resembling the October seventh attack by Hamask on his rol. 0:05:27.040 --> 0:05:31.159 From Garsen, Dan Williams on the move for us. Now, 0:05:31.240 --> 0:05:35.239 we so appreciate your time. Now let's get a market 0:05:35.240 --> 0:05:39.360 reaction toward is a very people focused story, geopolitical story, 0:05:39.480 --> 0:05:41.920 and then we will move on to the world of technology. 0:05:41.960 --> 0:05:46.120 Alga portfolio manager on core Corawford is with us. It's 0:05:46.120 --> 0:05:48.120 difficult to respond to breaking news on the day. But 0:05:48.320 --> 0:05:51.919 does any of this vindicate a knee jerk reaction that 0:05:51.960 --> 0:05:53.200 we see in the markets? 0:05:53.520 --> 0:05:54.000 For sure? 0:05:54.240 --> 0:05:57.280 I mean, look, anytime there's uncertainty, it's going to hit 0:05:57.320 --> 0:06:01.920 the market because the ramifications of a war are clearly 0:06:02.360 --> 0:06:07.479 you know, global, widespread and impactful. You know, besides the 0:06:07.480 --> 0:06:12.599 fact that it's very sad, and you know, the market 0:06:12.600 --> 0:06:14.039 reaction is not surprising at all. 0:06:14.480 --> 0:06:17.560 Uncle, when you look at what the biggest point drags 0:06:17.560 --> 0:06:20.400 are on a Nasdaq benchmark, on an S and P benchmark, 0:06:21.160 --> 0:06:24.440 Unsurprisingly they are big tech, but that's largely because they 0:06:24.480 --> 0:06:26.280 are the biggest companies out there, rather than they have 0:06:26.400 --> 0:06:30.080 the most exposure to any geopolitical tensions. But does that 0:06:30.200 --> 0:06:35.279 warrant a desire to pull back on any over focus 0:06:35.400 --> 0:06:37.320 on the Magnificent seven for example? 0:06:38.400 --> 0:06:41.880 You know, I think it's it's clear as the market 0:06:41.920 --> 0:06:45.320 has outflows and people try and sell the market that 0:06:45.440 --> 0:06:48.920 the mag seven are the biggest proportion of the benchmarks 0:06:49.400 --> 0:06:52.640 and the easiest place to take capital from. So it's 0:06:52.680 --> 0:06:57.080 not surprising that they're they're underperforming. Does it give us 0:06:57.080 --> 0:07:00.599 any less conviction in the long term of where these 0:07:00.640 --> 0:07:04.640 businesses are going? It doesn't, and it doesn't really change 0:07:04.680 --> 0:07:05.839 that thesis. 0:07:05.760 --> 0:07:08.680 Talk to about where these businesses are going. Today, we 0:07:08.839 --> 0:07:12.000 have Apple on the downside significantly, not just because of 0:07:12.000 --> 0:07:14.200 the market selling, but because of worries about the sales 0:07:14.200 --> 0:07:16.600 of its iPhone sixteen. A lot of that predicated on 0:07:16.680 --> 0:07:19.800 when it will really intertwine AI into that offering. The 0:07:19.800 --> 0:07:22.920 flip side, Microsoft today is showing off its prowess in 0:07:22.960 --> 0:07:26.000 the area of consumer AI. What is the thesis for 0:07:26.040 --> 0:07:28.040 these names and how much we'll actually start all using 0:07:28.080 --> 0:07:29.640 the artificial intelligence they promise? 0:07:29.880 --> 0:07:31.840 Yeah, so you know, one thing I'd like to remind 0:07:31.880 --> 0:07:36.560 everyone is that AI burst onto the consumer scene only 0:07:37.080 --> 0:07:41.239 twenty two months ago, and we are expecting the leaps 0:07:41.240 --> 0:07:44.760 and bounds we expecting revenue, and you know, the ROI 0:07:44.840 --> 0:07:49.800 inside of twenty two months is probably the fastest expectation 0:07:50.160 --> 0:07:57.120 baked into any company for any technological revolution. And so 0:07:58.200 --> 0:08:02.240 you know, where I think they're going is AI will 0:08:02.280 --> 0:08:06.200 be integrated with everything that we do. And today we 0:08:06.240 --> 0:08:08.840 think of it as a copilot. I think it's really 0:08:08.880 --> 0:08:12.240 a co worker of where we're going to. A personal 0:08:12.320 --> 0:08:16.240 digital assistant is where the consumer AI will go. And 0:08:16.640 --> 0:08:19.680 then one has to really ask for a company like Apple, 0:08:21.040 --> 0:08:24.840 can they actually abstract you away from your phone and 0:08:25.120 --> 0:08:29.720 abstract you away from the app layer and really significantly 0:08:29.840 --> 0:08:33.040 change the business model as they go into a more 0:08:33.120 --> 0:08:35.640 personalized digital assistant type world? 0:08:36.080 --> 0:08:37.840 And what is that worth to Apple? 0:08:38.640 --> 0:08:38.679 Know? 0:08:38.760 --> 0:08:40.359 What is that worth to a consumer? 0:08:41.160 --> 0:08:44.640 I would argue that it's significantly more than worrying about 0:08:44.720 --> 0:08:48.160 a near term product cycle, because you know that software 0:08:48.160 --> 0:08:49.760 based product cycle is coming. 0:08:50.600 --> 0:08:54.160 We have been talking about the AI impact on stocks 0:08:54.280 --> 0:08:56.840 on revenue for twenty two months, even if the consumer 0:08:56.880 --> 0:08:57.520 hasn't embraced it. 0:08:57.559 --> 0:08:59.800 As much as perhaps the market wants to talk about it. 0:09:00.600 --> 0:09:03.280 Where have it we embraced in terms of the stokes 0:09:03.280 --> 0:09:07.000 that will rally that we haven't really seen outperform yet. 0:09:07.520 --> 0:09:09.920 Yeah, I think I think AI is going to go 0:09:10.080 --> 0:09:13.960 through waves. So initially we've looked at the pigs and shovels, 0:09:14.480 --> 0:09:18.280 and it has been Nvidia, the semiconductor companies, and even 0:09:18.320 --> 0:09:19.160 inside the semis. 0:09:19.160 --> 0:09:20.240 It hasn't been all semis. 0:09:20.280 --> 0:09:22.360 There have been a select few and there's been a 0:09:22.360 --> 0:09:28.040 big bifurcation. We've seen it in a select number of industrials, 0:09:28.480 --> 0:09:32.240 those that cater to data center and the changing data center. 0:09:32.960 --> 0:09:36.680 Then we saw it in in electricity with some of 0:09:36.679 --> 0:09:41.000 these nuclear nuclear plays and the utilities and then catching 0:09:41.040 --> 0:09:41.400 on fire. 0:09:41.480 --> 0:09:43.120 And so you know, I. 0:09:43.440 --> 0:09:46.600 Believe the next phase of this is going to come 0:09:46.760 --> 0:09:49.760 in the rest of the data center and also those 0:09:49.760 --> 0:09:53.240 companies that show that by using AI they're in fact 0:09:53.400 --> 0:09:57.719 improving their operating margins. And that's the next phase. Now 0:09:57.920 --> 0:10:00.679 I expect that to come and you know, twenty five 0:10:00.760 --> 0:10:04.719 to twenty six, because still deploying this AI is not 0:10:04.760 --> 0:10:07.320 necessarily flipping on a switch. 0:10:07.720 --> 0:10:08.600 It takes some planning. 0:10:08.840 --> 0:10:11.120 AI is of course disrupting many a vertical. We think 0:10:11.160 --> 0:10:12.719 how it's going to be applied to healthcare, we think 0:10:12.760 --> 0:10:14.920 of how it's going to be applied to finance. I 0:10:15.000 --> 0:10:16.880 go back to our top story of the day and 0:10:16.960 --> 0:10:21.040 geopolitical tensions. How much will it be applied to defense? 0:10:21.240 --> 0:10:23.640 And is that an area that you've been thinking would 0:10:23.640 --> 0:10:27.800 be outperforming not only in a gypolitical instance, but also 0:10:27.840 --> 0:10:28.800 from an AI backing. 0:10:29.080 --> 0:10:31.880 Yeah, it absolutely will that the amount of money that 0:10:31.960 --> 0:10:37.000 will be required to shore up our defenses and that 0:10:37.080 --> 0:10:39.520 will be spent on defense is going to be significant, 0:10:39.559 --> 0:10:42.800 and in part because you know, just like the Industrial 0:10:42.840 --> 0:10:46.000 Revolution and in the late seventeen hundreds kind of change 0:10:46.040 --> 0:10:49.920 the geopolitical landscape for England at that point in time. 0:10:50.080 --> 0:10:51.000 I believe that. 0:10:50.880 --> 0:10:56.400 AI is going to change the geopolitical landscape for whichever 0:10:56.520 --> 0:11:01.120 country is actually wholeheartedly adopted and then also become leaders 0:11:01.160 --> 0:11:04.880 in it, and that can set the chessboard for the 0:11:04.920 --> 0:11:05.839 next fifty years. 0:11:07.720 --> 0:11:10.240 It's been wonderful to have you in the studio today. 0:11:10.240 --> 0:11:13.839 We appreciate you going across the whole gamut of breaking news. 0:11:13.960 --> 0:11:16.040 Unco Crawford ALGA portfolio Manager. 0:11:16.720 --> 0:11:20.040 Now Taiwan closing its two and a half trillion Dollar 0:11:20.080 --> 0:11:24.360 stock market as super typhoon Krathon approaches the island with 0:11:24.440 --> 0:11:25.640 strong winds and heavy rain. 0:11:25.679 --> 0:11:27.560 Now the market will not conduct. 0:11:27.200 --> 0:11:29.800 Securities, currency, or fixed income trading on Wednesday, according to 0:11:29.840 --> 0:11:32.840 statements from its exchanges. Traders are watching for any possible 0:11:32.840 --> 0:11:35.000 disruption from the typhoon, which is likely to hit the 0:11:35.000 --> 0:11:39.360 West coast, home to Taiwan's heavy industry manufacturing, including of course, 0:11:39.400 --> 0:11:40.480 a plant made a. 0:11:40.559 --> 0:11:42.199 Chip making giant TSMC. 0:11:50.480 --> 0:11:53.920 Echo Star announced yesterday that it's selling its video distribution 0:11:54.000 --> 0:11:57.360 business to Direct TV, a merger that the satellite providers 0:11:57.400 --> 0:12:00.560 have flirted with for almost two decades. We caught up 0:12:00.559 --> 0:12:02.640 with Ecosta CEO Hamid Akaban. 0:12:03.160 --> 0:12:04.080 Here's what you have to say. 0:12:04.880 --> 0:12:07.000 The founders was that this business ends up in great 0:12:07.000 --> 0:12:12.240 hands and continue to develop according to their lifelong working 0:12:12.360 --> 0:12:14.199 vision to you know, make it, you know, one of 0:12:14.200 --> 0:12:16.200 the greatest companies that can make and you know, the 0:12:16.240 --> 0:12:18.840 combination of the two companies now will be that company. 0:12:19.640 --> 0:12:21.800 The company that you know is unique in his position 0:12:21.840 --> 0:12:25.600 in the marketplace. So it's bittersuite, you know in a way. 0:12:25.640 --> 0:12:28.400 They see it in you know, great hands. They're coming 0:12:28.440 --> 0:12:32.120 together and being that challenger that Charlie has created over time, 0:12:32.480 --> 0:12:35.360 but it's also letting it go. It's also very difficult. 0:12:35.480 --> 0:12:37.760 So the answer is bittersweet, not really obvious. 0:12:38.040 --> 0:12:40.840 Satellite TV is ultimately in a state of decline. 0:12:40.960 --> 0:12:43.000 Will this be a period of managed to climb for 0:12:43.040 --> 0:12:43.800 the bigger company. 0:12:44.280 --> 0:12:46.560 It's certainly as part of the thesis that you know 0:12:46.679 --> 0:12:49.160 right now. This is not you know at the time 0:12:49.240 --> 0:12:50.839 that it used to be ten or fifteen years ago, 0:12:50.880 --> 0:12:53.640 when the you know, position of these two companies that 0:12:53.640 --> 0:12:56.800 are coming together was unique and was very strong. The 0:12:56.840 --> 0:12:59.679 two companies have lost sixty percent of their subscribers over 0:12:59.679 --> 0:13:02.959 the past since twenty sixteen, They've lost that everyone has 0:13:03.000 --> 0:13:05.480 access to broadband today, whether it be terrestrial or through 0:13:05.520 --> 0:13:11.040 satellite starlink, you know, the direct to a consumer digital 0:13:11.240 --> 0:13:16.920 providers programmers going around these two companies are ten to 0:13:16.960 --> 0:13:19.679 twenty times largely in terms of customer base. So it 0:13:19.720 --> 0:13:22.080 is time for these companies to come together to increase 0:13:22.120 --> 0:13:25.800 their sustainability and ability to negotiate better deals that it 0:13:25.880 --> 0:13:27.079 can pass on to the consumers. 0:13:27.280 --> 0:13:30.560 That was Ekosta CEO Hamid Akavan. Now let's continue this 0:13:30.640 --> 0:13:34.839 PATV measuer. I'm joined by well who Echo Star sold 0:13:34.920 --> 0:13:39.400 Dish to DirecTV. The CEO now joins us, Bill Morrow. Bill, 0:13:39.480 --> 0:13:42.679 welcome to the show. And I ask you this now 0:13:42.760 --> 0:13:46.600 strategy going forward, the combined nineteen million subscribers you now 0:13:46.679 --> 0:13:48.280 have or do you offer them? 0:13:48.559 --> 0:13:49.600 Is it managed to climb? 0:13:50.000 --> 0:13:50.360 Well? 0:13:50.440 --> 0:13:53.400 Thanks Caroline, And actually we're going to offer them something 0:13:53.480 --> 0:13:56.200 that the new kind of competition cannot. 0:13:56.320 --> 0:13:58.680 You think about the volume of. 0:13:58.760 --> 0:14:04.480 Directed consumer subscription type services. These are the Netflix, Amazon, Primes, 0:14:05.160 --> 0:14:07.880 HBO Maxes that are out there. They have a very 0:14:08.000 --> 0:14:10.880 narrow scope of the content that they offer, the way 0:14:10.880 --> 0:14:14.559 in which they can only navigate through their platforms. Consumers 0:14:14.600 --> 0:14:17.719 are left with having to pick and choose multiple subscription 0:14:17.880 --> 0:14:21.440 services and manage this on their own. They're having the 0:14:21.520 --> 0:14:26.200 difficulty to navigate across these different platforms. With a new 0:14:26.240 --> 0:14:29.680 company with DirecTV and Dish, will do is number one. 0:14:29.880 --> 0:14:32.960 It will actually bundle all of those different services together. 0:14:33.480 --> 0:14:35.720 We'll still have a form of linear or time of 0:14:35.800 --> 0:14:38.960 day type programming, but we're going to let the consumer 0:14:39.040 --> 0:14:41.520 pick and choose two or three or four if that's 0:14:41.520 --> 0:14:45.480 what they want. Of these other directed consumer programs. We'll 0:14:45.480 --> 0:14:48.880 wrap a user interface around that. We'll make navigation easy, 0:14:48.920 --> 0:14:53.360 We'll make search and recommendation easy. But equally as important 0:14:53.400 --> 0:14:56.720 to Caroline is that the combined entity with just under 0:14:56.760 --> 0:15:00.880 twenty million subscribers will give us them very neat influence 0:15:01.320 --> 0:15:04.120 on the industry to work with the programmers, to say, 0:15:04.520 --> 0:15:05.680 the days of the past. 0:15:05.760 --> 0:15:08.400 If two hundred and fifty channels are gone. 0:15:08.640 --> 0:15:11.000 Consumers don't want to pay for content that they are 0:15:11.120 --> 0:15:14.240 never going to watch, and the programmers are still kind 0:15:14.280 --> 0:15:17.920 of tied to those old carriage agreements. This influence is 0:15:17.960 --> 0:15:19.960 going to change that it is in the interest of 0:15:20.000 --> 0:15:23.000 the consumers. We think it's in the industry, the programmers 0:15:23.000 --> 0:15:25.120 in the long run, and of course to our company 0:15:25.160 --> 0:15:25.960 as well. 0:15:26.080 --> 0:15:26.400 Bill. 0:15:26.760 --> 0:15:30.000 I can see how you offer from a price perspective, 0:15:30.320 --> 0:15:32.920 and I can also see how ultimately this is about 0:15:33.480 --> 0:15:34.600 slimming down costs. 0:15:35.000 --> 0:15:36.120 But what about growth. 0:15:36.160 --> 0:15:38.800 Do you think you will ever increase that number subscribed 0:15:39.040 --> 0:15:40.720 or is it about just serving the ones you have? 0:15:42.000 --> 0:15:44.360 Well, well, Caroline, we've really studied the market and what 0:15:44.400 --> 0:15:47.040 are the pain points of the current environment that consumers 0:15:47.080 --> 0:15:50.880 feel and again having to manage multiple subscriptions, not knowing 0:15:50.920 --> 0:15:54.080 where your content is. Even the biggest search engines that 0:15:54.120 --> 0:15:57.200 can't keep up when you're looking for a particular season 0:15:57.280 --> 0:15:58.960 or episode of your favorite. 0:15:58.600 --> 0:16:00.920 Series, or a movie that you want to watch. 0:16:01.640 --> 0:16:04.760 We know that the consumers need more than what's available today. 0:16:05.160 --> 0:16:07.920 By combining these two companies having the influence to be 0:16:07.960 --> 0:16:10.600 able to change those carriage agreements, we're going to give 0:16:10.640 --> 0:16:14.200 them thinner, linear bundles of genres that they can pick. 0:16:14.520 --> 0:16:15.920 We'll let them add in and. 0:16:15.840 --> 0:16:19.600 Insert in the s FOD or those directed consumer Netflix 0:16:19.720 --> 0:16:23.480 or Amazon Primetype services and again with a very different 0:16:23.560 --> 0:16:26.800 kind of experience that will allow us to get back 0:16:26.800 --> 0:16:30.000 into a growth situation. Now we need the two companies 0:16:30.000 --> 0:16:32.800 to come together because we are falling fast. You've heard 0:16:32.800 --> 0:16:36.120 this from a number of different industry experts. So this 0:16:36.200 --> 0:16:39.680 buys us some time, gives us the influence to shape 0:16:39.680 --> 0:16:42.640 the industry. That's all about the consumer, and it's going 0:16:42.640 --> 0:16:44.520 to give something to them that they haven't had. 0:16:44.720 --> 0:16:46.360 But do we need more streaming? 0:16:46.440 --> 0:16:49.000 I know that you're thinking about DirecTV stream and Dish TV, 0:16:49.240 --> 0:16:51.840 and ultimately it sounds that we're going back to the 0:16:51.880 --> 0:16:55.240 past by rebundling the things we've already snipped in terms 0:16:55.280 --> 0:16:55.760 of the cord. 0:16:56.680 --> 0:16:58.960 Number of it is that bundle pass is not going 0:16:59.000 --> 0:17:01.040 to service going into the future and That's why we 0:17:01.120 --> 0:17:04.480 believe with a new kind of carriage agreement, it's going 0:17:04.520 --> 0:17:06.560 to allow you, the rest of the consumers, the rest 0:17:06.560 --> 0:17:09.480 of your viewers, to pick and choose the genres of 0:17:09.520 --> 0:17:12.080 their choice and not pay for all the rest of it. 0:17:12.480 --> 0:17:14.399 So it's not as big of a bundle as what 0:17:14.440 --> 0:17:17.399 we've seen in the past, and that's what we've been advocating. 0:17:17.480 --> 0:17:19.800 That was the deal that we struck with Disney. We 0:17:19.920 --> 0:17:22.600 fought so hard for to be able to get let 0:17:22.640 --> 0:17:25.399 the consumers pick what they want to watch and not 0:17:25.560 --> 0:17:28.240 force them to pay for stuff that they'll never tune into. 0:17:28.720 --> 0:17:29.960 And that is our future. 0:17:30.280 --> 0:17:33.280 You have other stakeholders, largely private equity now when it 0:17:33.320 --> 0:17:37.440 comes to TPG, but also the creditors, and a lot 0:17:37.440 --> 0:17:40.879 of this is based upon whether or not the bondholders 0:17:41.240 --> 0:17:43.159 of Dish in particular sign up to this. Do you 0:17:43.160 --> 0:17:45.080 think that will go through? How painful is it to 0:17:45.080 --> 0:17:46.200 take those sorts of haircuts. 0:17:47.160 --> 0:17:50.479 Well, we think the current bondholders of the DBS business 0:17:50.520 --> 0:17:53.320 under Echo Star with Dish are going to have a 0:17:53.359 --> 0:17:56.280 better deal by converting and exchanging into the debt that 0:17:56.320 --> 0:17:59.919 we're offering. We think it'll be better leverage ratios than 0:18:00.480 --> 0:18:03.240 they see today, there's better confidence in terms of this 0:18:03.359 --> 0:18:06.560 business model about looking forward into the future without the 0:18:06.640 --> 0:18:09.560 risk that they might perceive today with that DBS business. 0:18:10.440 --> 0:18:15.119 We also have advocated and explained that while our initial 0:18:15.320 --> 0:18:18.640 leverage ratio will be in the two and a half times, 0:18:19.040 --> 0:18:22.520 that still is better than any other PayTV provider that 0:18:22.840 --> 0:18:26.160 is out in the marketplace today, and within a twelve 0:18:26.160 --> 0:18:28.160 to twenty four month window, we're going to be very 0:18:28.160 --> 0:18:31.560 focused on bringing that leverage ratio down to below two. 0:18:32.080 --> 0:18:35.280 So that's the reason that we believe they're interested. 0:18:34.880 --> 0:18:38.399 In making this exchange, lowering that debt, making sure that 0:18:38.440 --> 0:18:41.000 this M and A deal can happen, and then we 0:18:41.080 --> 0:18:44.240 of course proceed to the FCC and the DOJ for 0:18:44.320 --> 0:18:46.040 the needed regulatory approvals. 0:18:46.720 --> 0:18:48.520 We'd like to keep in touch as you go through 0:18:48.520 --> 0:18:53.480 those approvals. DirecTV CEO Bill Morrow. We really appreciate your time. Now, 0:18:53.520 --> 0:18:55.359 let's get back to the markets, which are under a 0:18:55.359 --> 0:18:58.080 significant pressure from geopolitical news today. Of course, through off 0:18:58.119 --> 0:18:59.919 by one point three percent on the SMPO four hundred. 0:19:00.040 --> 0:19:03.320 It's a large move, but actually the largest since September 0:19:03.359 --> 0:19:06.080 the sixth. We have seen this element of volatility prior 0:19:06.119 --> 0:19:07.600 to this and a's that one hundred off by more 0:19:07.640 --> 0:19:10.040 than two percent though, so big tech feeling the most pain. 0:19:10.480 --> 0:19:13.200 Money moves into Brent crude. Money moves into the haven. 0:19:13.240 --> 0:19:16.119 That is the US tenure will keep you up to 0:19:16.160 --> 0:19:18.280 speed with the moves between Iran and Israel. 0:19:18.359 --> 0:19:25.880 This is BlueBag technology. 0:19:34.800 --> 0:19:40.040 Quick struck check on soft banks ADRs because those equity 0:19:40.160 --> 0:19:41.920 like instruments that are trading here in the United States 0:19:42.000 --> 0:19:43.880 off by eight tenths of a percent, but it had 0:19:43.920 --> 0:19:45.920 been rising and in fact they closed more than three 0:19:45.920 --> 0:19:48.960 percent higher in Japan trading after the Information reported that 0:19:49.000 --> 0:19:51.560 the firm's Vision Fund plans to invest five hundred million 0:19:51.560 --> 0:19:53.919 dollars in open Ai, citing a source. 0:19:54.240 --> 0:19:56.080 This is, of course, as open ai is kicking off 0:19:56.080 --> 0:19:59.240 its developers day to day. Bomberg's Rachel Metz is busy. 0:20:00.160 --> 0:20:02.160 Tell us a little bit more about the investment round. 0:20:02.200 --> 0:20:03.760 Where we stand in terms of the six and a 0:20:03.800 --> 0:20:04.800 half billion dollar raise. 0:20:05.440 --> 0:20:08.520 Yeah, so it is our understanding that that should be 0:20:08.520 --> 0:20:10.960 closing soon. I mean typically it takes some time for 0:20:11.040 --> 0:20:15.320 these rounds to close. I would expect her to close, yeah, 0:20:15.359 --> 0:20:19.440 and the probably, I don't know, soon in the next 0:20:19.440 --> 0:20:20.680 few days, perhaps. 0:20:20.920 --> 0:20:23.520 Okay, Keen I what's happening in the private markets. In 0:20:23.560 --> 0:20:26.359